OneStream Research: Female CFOs Help Underperforming Companies Achieve Growth

A study recently released by OneStream Software shows that appointing women as Chief Financial Officers (CFOs) helps enhance corporate innovation capabilities, increase shareholder value, and improve revenue growth. The study focuses on the return on investment of diversity in financial executive positions.

When underperforming companies appoint women as CFOs, compared to the performance during the tenure of the previous financial leader,total shareholder return improves by an average of 10%,according to the report. The report, titled "The Glass Chair: Unlocking the Value of Women in Finance," was released on Wednesday. The study also points out that among Fortune 500 and FTSE 100 companies, female CFOs also help boost shareholder value—in the healthcare industry, their performance exceeds the industry benchmark by up to 4.7%.

Part of the reason for the performance improvement may be that women in top financial positions tend to play what the study calls the "financial steward" role—leaders focused on financial governance, strategic leadership, and team development. Pam McIntyre, Senior Vice President and Corporate Controller at OneStream, stated that this detail-oriented approach is crucial for improving performance: understanding "what the required shareholder value is, what the required execution process is, and having these different perspectives is truly important for turning a company around."

In an interview, McIntyre discussed the "financial steward" approach, saying that once all rules and controls are in place, "you can then continue to develop the roadmap, drive the transformation process, implement tools and artificial intelligence, and become a strategic thinker and visionary for the enterprise, because you understand where everything is... and you know how to drive results in every position you have held."

Indirect career paths

The Glass Chair study is part of the "Finance 3025" initiative launched by OneStream, an enterprise software provider headquartered in Birmingham, Michigan. The study examines the return on investment of women in top financial positions amid the evolving role of the CFO—a change that has brought greater scrutiny to the skills and experience required to effectively fill the seat.

McIntyre stated that as financial leaders transition from record-keepers to strategic leaders, the most important skill set for the position is a deep, comprehensive understanding of the business. "The more you understand the goals, the vision, and the actions needed to achieve that vision, the better suited that person is for the seat," she said.

Women in finance are well-positioned to bring this skill set into the CFO role: because their path to the position is longer and more circuitous than men's, they are able to accumulate experience in different parts of the business, thereby bringing a different and comprehensive perspective when serving as CFO.

OneStream's research found that women reach the CFO seat on average three years later than men, and they are about 6% more likely to take a non-traditional path to the top financial position—rising to 12% in FTSE 100 companies. The study surveyed 700 finance professionals, split evenly between men and women.

"I do believe that all these different experiences provide you with skills to put in your toolbox and then bring to the next role, whether it's new management skills, new operational skills, or new financial skills," McIntyre said.

According to her LinkedIn profile, McIntyre has served as Corporate Controller at OneStream since February 2020. Her previous positions include Vice President and Corporate Controller at Dura Automotive Systems, and Director of Finance at Inteva Products. McIntyre began her career as an auditor at Ernst & Young, one of the Big Four accounting firms.

As the demands of the CFO role continue to evolve, the number of women in the position may increase as a result, although they still face barriers to entry: according to OneStream's research, only one in four CFOs at Fortune 500 or FTSE 100 companies globally are women—a proportion that has remained unchanged since 2011.

However, McIntyre stated that this proportion may rise in the coming years, both because the path to the CFO seat is increasingly broadening beyond traditional finance roles, and because "there will be a shortage of people with the right skills" to fill the evolving CFO role. She noted that as the accounting and finance industry continues to face a shortage of skilled talent—both from the retirement wave of experienced professionals and the continued contraction in the number of new graduates with accounting degrees—the demand for women to fill top financial positions will grow.

Embracing risk

As the path to the CFO role broadens, women are also closely watching the skills and experiences they believe are crucial for effectively serving as financial leaders in the future. OneStream's research found that 75% of female CFOs believe honing "digital literacy" skills is key to adapting to the evolving demands of the role. Meanwhile, 83% said the increased use of automation within finance teams "is allowing different types of expertise to enter the CFO role."

However, as the demand for digital skills grows, the next generation of women targeting the CFO role may need to become more comfortable with risk. While OneStream's research shows that women in top financial positions tend to drive digital transformation, data from a previous survey also reveals a widening skills gap in artificial intelligence. OneStream cited a previous report stating that 24% of women expect to rely on AI, compared to 40% of men.

However, the report notes that this gap "signals a critical opportunity." "As technology reshapes the finance function, it can also drive the next wave of inclusive progress. But to realize this potential, ensuring equal access to upskilling, mentorship, and leadership development pathways must become a priority," the report states.

McIntyre stated that as AI technology penetrates deeper into the finance function, executive leaders are seeking to understand how to leverage these tools in a secure environment.

"I think as people build these systems, women will begin to become more comfortable: 'Yes, I can do this without compromising compliance. I can do this without increasing company risk, and create the right framework to execute AI within the right set of tools,'" she said.